More Guangdong Firms
Default on Bond Payments

By

Craig S. Smith and

Karby Leggett Staff Reporters of The Wall Street Journal

Updated Feb. 1, 1999 12:01 a.m. ET

GUANGZHOU, China -- At least six state-owned companies in southern China's Guangdong province have defaulted on domestic bond issues, extending the recent string of defaults that have burned foreign bankers and international bondholders.

While the total amount of debt involved -- apparently less than 500 million yuan ($60 million) -- is only a fraction of the $4.3 billion owed by now-bankrupt Guangdong International Trust &...